CORRECTED-UPDATE 1-Zambian president seeks to end mining tax rows

(Corrects to show Barrick announces suspension, not yet carried
out (para 7))

LUSAKA Feb 3 (Reuters) - Newly-elected Zambian President
Edgar Lungu has directed the government to "promptly resolve" a
row with mining companies over new royalties and VAT refunds,
the presidency said in a statement on Tuesday.

The presidency also said Finance Minister Alexander
Chikwanda would discuss the issues with mining companies this
week. The simmering disputes over taxes have threatened
investment in Africa's second-biggest copper producer.

The statement said the president wanted "an amicable
settlement that must end in a win-win outcome for both the
mining companies and the people of Zambia."

Zambia's mining tax tussles, coming at a time when copper is
near 5-1/2 year lows and economic growth in the southern African
nation is faltering, are two-fold.

One dispute involves $600 million in Value Added Tax (VAT)
refunds which the industry says is being withheld by the
government. The second centres on a hike on royalty rates to 20
percent from 6 percent for open pit operations and those for
underground mines to 8 percent from 6 percent.

Zambia's Chamber of Mines said in December the new royalties
would result in shaft closures and 12,000 jobs losses.

The plan has already prompted Toronto-based Barrick Gold
Corp. to announce it would suspend operations at its
Lumwana Copper Mine, which supports nearly 4,000 direct jobs in
the area.

Lungu also urged the central bank to cut interest rates to
stimulate economic growth. He won a tight presidential election
last month on pledges he would create jobs and reduce poverty.
(Reporting by Chris Mfula; Writing by Ed Stoddard; Editing by
James Macharia)